Business Information Systems

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Business Information Systems

Introduction

As much as the cloud technology seems lucrative, it has its own downsides as well. Financial firms need to have a clear concept of the concept and challenges that come along with the usage of cloud technology when they are shifting towards that system. This paper highlights the advantages and the possible hurdles that financial firms may face when implementing cloud computing (Foo, 2011).

Discussion

Cloud Computing refers to the concept where the resources of a computer are shared instead of servers and devices handling all sorts of different applications. A “cloud” is more like the internet, where different activities can be performed that normally users are performing on the internet- like backing up data and applications. The cloud computing technology has played a major role in today's computer networking. Most of the top organizations try to hire the best people from the market who are well versed in Cloud Computing.

Advantages

There are a number of advantages that cloud computing has to offer for financial and accountancy firms:

The cloud keeps alerting the user automatically for new updates, which are continuous. This makes the same version available to every cloud user.

A backup of the cloud is created automatically on the user's specified settings. This frees the user of the hassle of backing up data manually every now and then.

Access to data is highly simplified; users can access their data on any device, at any location!

In accountancy firms, this brings the Certified Public Accountant and his or her clients closer as they both have access to the same data. However, this may differ in features because the device used to access varies from user to user (Dern, 2012).

Investment firms can benefit by saving or reducing their costs by moving to cloud computing systems. The need for building up a communications room is reduced as firms do not have to spend on infrastructure due to the presence of cloud computing, which enables the company to maintain a web address on which it can store all of its data and retrieve it whenever and wherever it is required.

Firms save on those resources that they needed to purchase previously, but were going unused. Examples include hardware for storage that has been ordered and takes days to ship and arrive, but does not get used completely even though the buyer/user has paid in full amount. Cloud computing has an edge over this traditional system as it makes the user pay only for those resources that he or she has utilized.

Space extension is available if the space runs out.

The cloud infrastructure is supportive of multi-tenancy, and proper construction would ensure segregation of data at every stage to guarantee security and safety.

Firms who use cloud computing have significant environmental benefits over those who do not. First and foremost, they do not require all those resources that are required to maintain a typical communications room. The elimination of resources needed for cooling and maintaining energy supply instantly reduces energy and maintenance costs (Guilbert, ...